Many believed that California would be the first state in 2015 to legalize online poker as the golden state has been debating a new online poker bill passed by Mike Gatto. The bill is currently being amended after Gatto decided to act on the feedback he received from the online poker community and poker analysts. He is expected to submit the bill for review in the coming weeks.
However, a recently corruption investigation initiated by the state of California will look into an ex-state gaming official for alleged misconduct in his work related to a San Jose card club called the Casino M8trix. The official is accused of skimming over $119 million in cash and if he is tried and found guilty, it will definitely have an influence on the legalization of online poker in California.
The Attorney General Kamala Harris has alleged that Robert Lytle had confidential information about the investigation that was targeting Casino M8trix and used that information
potentially compromised the effectiveness, and undermined the integrity, of the bureau’s investigations.
Harris worked at the Bureau of Gambling Control and left the organization in 2007 after he secured a post as a compliance officer for Casino M8trix. The lawsuit alleges that during his tenure as a compliance offer, Harris has shared confidential information obtained during his tenure at the Bureau of Gambling Control.
There have been many ex-gaming regulators who have left their government jobs to take up a position in the private sector but most do so after completing their contractual obligations which also include a “cooling-off” period. There are generally no concerns when this happens because there are strict non-disclosure agreements incorporated into every contract. However, Lytle will have a tough fight on his hands because he also has ownership stakes in a number of California gambling facilities.
Lytle’s defence team states that he has not broken the “cooling-off” period and did not violate any non-disclosure agreements. Journalist Dave Palermo points out that
Lytle also is accused in the complaint of directing agents to ‘cut back ongoing investigatory activities’ into [Casino] M8trix in December, 2007, a month before he retired from the bureau and after he began negotiating a contract to work as a compliance officer for the casino.
Richard Schuetz who is a member of the state Gambling Control Commission admits that this investigation will not help the online poker legalization process in California.
